Computer Aided Engineering Market Size and Outlook 2031

Report Description

Forecast Period	2027-2031
Market Size (2025)	USD 13.09 Billion
CAGR (2026-2031)	10.13%
Fastest Growing Segment	Cloud
Largest Market	North America
Market Size (2031)	USD 23.35 Billion

Market Overview

The Global Computer Aided Engineering Market will grow from USD 13.09 Billion in 2025 to USD 23.35 Billion by 2031 at a 10.13% CAGR. Computer Aided Engineering comprises software tools that simulate physical behaviors to validate and optimize product designs virtually. The market expands primarily due to the imperative to reduce physical prototyping costs and accelerate development cycles across manufacturing sectors. Furthermore the increasing complexity of modern machinery necessitates precise virtual testing to ensure safety and performance standards are met before production begins.

However the steep learning curve associated with these tools poses a significant barrier to widespread adoption. A major impediment is the lack of proficient talent to manage advanced digital systems effectively. According to Make UK, in 2024, while 75% of manufacturers planned to increase investment in artificial intelligence and digital technologies, only 16% considered themselves knowledgeable on the subject. This skills gap limits the ability of firms to fully leverage simulation capabilities for innovation.

Key Market Drivers

The Rapid Adoption of Cloud-Based Computing and SaaS Delivery Models is fundamentally reshaping the Global Computer Aided Engineering Market by democratizing access to high-performance simulation tools. Small and medium-sized enterprises, previously hindered by the prohibitive costs of on-premise hardware, can now leverage scalable computing power on demand, significantly reducing upfront capital expenditure. This shift facilitates real-time collaboration across geographically dispersed engineering teams, ensuring that data integrity is maintained while accelerating design iterations. According to Dassault Systèmes, February 2025, in the 'Fourth Quarter and Full Year 2024 Results' press release, the company’s cloud software revenue, excluding Medidata, increased by more than 40% year-over-year, underscoring the aggressive industry shift toward flexible, subscription-based remote access models.

The Incorporation of Artificial Intelligence and Machine Learning in CAE Tools acts as a critical force multiplier for market growth by automating complex optimization tasks and drastically reducing simulation run times. AI algorithms enable predictive modeling and generative design, allowing engineers to explore thousands of design variations rapidly without manual intervention, which is essential for meeting tight product launch deadlines in sectors like automotive and aerospace. According to Ansys, February 2025, in the 'Q4 and FY 2024 Financial Results' report, the firm achieved an 11% growth in annual contract value, a performance attributed significantly to the robust demand for its AI-enabled simulation solutions. Reflecting the broader trajectory of this technology-driven expansion, according to Synopsys, in 2024, the company reported a revenue increase of approximately 15% to $6.1 billion, highlighting the sustained industrial investment in advanced computational engineering capabilities.

Download Free Sample Report

Key Market Challenges

The steep learning curve and the acute shortage of skilled professionals serve as a substantial restraint on the Global Computer Aided Engineering Market. These advanced simulation tools require operators to possess deep knowledge in physics and mathematics alongside technical software proficiency. When organizations fail to secure this specialized talent, they are unable to implement or fully utilize CAE solutions, leading to a hesitation in purchasing new licenses or upgrading existing systems. This inability to deploy virtual testing effectively forces companies to rely on slower legacy processes, thereby stalling the operational efficiency that drives market demand.

The impact of this skills deficit is quantifiable and severe, creating a bottleneck in research and development departments. Firms are reluctant to invest in expensive digital tools when they lack the human capital to manage them. This trend is substantiated by recent industry figures. According to the Institution of Engineering and Technology, in 2025, 76% of engineering employers reported struggling to recruit staff with the necessary technical skills. This widespread inability to fill critical roles delays digital transformation initiatives, directly dampening financial expansion and adoption rates within the engineering software sector.

Key Market Trends

The Implementation of Digital Twin Technology for Real-Time Monitoring is revolutionizing the market by extending the utility of simulation beyond the design phase into the operational lifecycle. By creating dynamic virtual replicas of physical assets, manufacturers can continuously ingest sensor data to predict maintenance needs and optimize performance in actual operating conditions. This capability establishes a seamless digital thread that connects initial engineering validation with post-production feedback, significantly reducing downtime for complex industrial machinery. The growing reliance on these integrated ecosystem platforms is evident in financial performance; according to Dassault Systèmes, February 2025, in the 'Fourth Quarter and Full Year 2024 Results' press release, 3DEXPERIENCE software revenue increased by 22%, reflecting the accelerating industrial demand for comprehensive environment modeling and lifecycle management solutions.

Simultaneously, the Shift Toward Real-Time Simulation and GPU Acceleration is fundamentally altering engineering workflows by enabling instantaneous physics feedback during the conceptualization stage. Traditional CPU-based solvers often require hours or days to compute results, whereas modern GPU architectures facilitate interactive design exploration and high-fidelity visualization of massive datasets, particularly for autonomous systems. This surge in computational intensity is driving substantial investment in hardware that supports advanced virtual testing. According to NVIDIA, February 2025, in the 'NVIDIA Announces Financial Results for Fourth Quarter and Fiscal 2025' report, automotive revenue, which is heavily bolstered by demand for high-fidelity simulation and autonomous vehicle development platforms, rose by 103% year-over-year to $570 million.

Segmental Insights

Based on current market analysis, the Cloud segment is identified as the fastest-growing category within the Global Computer Aided Engineering Market. This rapid expansion is primarily driven by the widespread shift from capital-intensive on-premise infrastructure to flexible, cost-efficient operational models. Cloud-based platforms allow organizations to leverage on-demand scalability for complex simulations without the burden of maintaining expensive hardware. Furthermore, this deployment mode facilitates seamless remote collaboration among globally dispersed teams and democratizes access to high-performance computing resources for Small and Medium-sized Enterprises. Consequently, businesses are increasingly adopting cloud strategies to enhance operational agility and accelerate product development cycles.

Regional Insights

North America maintains a leading position in the global Computer Aided Engineering market, primarily due to the extensive adoption of automation software within the aerospace and automotive industries. This dominance is reinforced by the presence of major software providers and a strategic focus on minimizing physical prototyping costs. Furthermore, stringent safety standards enforced by regulatory bodies such as the National Highway Traffic Safety Administration compel manufacturers to utilize simulation tools for compliance and validation. Consequently, the region benefits from a mature industrial ecosystem that supports consistent software investment.

Recent Developments

In July 2025, Synopsys completed its acquisition of Ansys, a transaction valued at approximately $35 billion that was originally announced in January 2024. This significant consolidation brought together a leader in semiconductor electronic design automation with a major provider of engineering simulation and analysis software. The combined entity focused on delivering silicon-to-systems design solutions, effectively addressing the growing complexity of intelligent systems by integrating electronics and physics simulation capabilities. This merger enhanced the company's ability to support customers in the automotive, aerospace, and industrial sectors with holistic engineering solutions.
In October 2024, Siemens Digital Industries Software announced a definitive agreement to acquire Altair Engineering for an equity value of approximately $10.6 billion. This strategic acquisition was designed to strengthen the company's position in the industrial software market by integrating Altair's advanced capabilities in simulation, high-performance computing, data science, and artificial intelligence into the Siemens Xcelerator platform. The transaction aimed to create a comprehensive AI-powered design and simulation portfolio, enabling the company to accelerate digital and sustainability transformations for its global customer base across various manufacturing industries.
In July 2024, Dassault Systèmes entered into a strategic partnership with Mistral AI to deliver trusted, AI-powered solutions tailored for industrial environments. The collaboration focused on integrating large language models with virtual twin experiences and sovereign cloud infrastructure to empower industries such as manufacturing, life sciences, and healthcare. This initiative aimed to provide generative AI capabilities that ensured data security and intellectual property protection while leveraging scientific modeling. The partnership sought to drive productivity and innovation by combining simulation data with advanced artificial intelligence to create reliable industry-grade applications.
In June 2024, Cadence Design Systems completed the acquisition of BETA CAE Systems International AG, a prominent provider of multi-domain engineering simulation solutions, for approximately $1.24 billion. This strategic move expanded the company's intelligent system design strategy by incorporating flagship products for structural analysis and pre- and post-processing into its multiphysics system analysis portfolio. The acquisition enabled the company to offer a more unified suite of simulation tools to the automotive and aerospace industries, significantly enhancing its structural simulation capabilities and unlocking new market opportunities in the computer-aided engineering sector.

Key Market Players

Autodesk Inc.
Siemens AG
SolidCAM Ltd.
CNC Software, LLC.
Hexagon AB
3D Systems, Inc.
HCL Technologies Limited
NTT DATA Corporation
OPEN MIND Technologies AG
BobCAD-CAM

By Deployment Mode	By End User	By Region
On-premises Cloud	Automotive Defense & Aerospace Electronics Medical Devices Industrial equipment Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Computer Aided Engineering Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Computer Aided Engineering Market, By Deployment Mode:

On-premises
Cloud

Computer Aided Engineering Market, By End User:

Automotive
Defense & Aerospace
Electronics
Medical Devices
Industrial equipment
Others

Computer Aided Engineering Market, By Region:

North America

United States
Canada
Mexico

Europe

France
United Kingdom
Italy
Germany
Spain

Asia Pacific

China
India
Japan
Australia
South Korea

South America

Brazil
Argentina
Colombia

Middle East & Africa

South Africa
Saudi Arabia
UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Computer Aided Engineering Market.

Available Customizations:

Global Computer Aided Engineering Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

Detailed analysis and profiling of additional market players (up to five).

Global Computer Aided Engineering Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

1. Product Overview

1.1. Market Definition

1.2. Scope of the Market

1.2.1. Markets Covered

1.2.2. Years Considered for Study

1.2.3. Key Market Segmentations

2. Research Methodology

2.1. Objective of the Study

2.2. Baseline Methodology

2.3. Key Industry Partners

2.4. Major Association and Secondary Sources

2.5. Forecasting Methodology

2.6. Data Triangulation & Validation

2.7. Assumptions and Limitations

3. Executive Summary

3.1. Overview of the Market

3.2. Overview of Key Market Segmentations

3.3. Overview of Key Market Players

3.4. Overview of Key Regions/Countries

3.5. Overview of Market Drivers, Challenges, Trends

4. Voice of Customer

5. Global Computer Aided Engineering Market Outlook

5.1. Market Size & Forecast

5.1.1. By Value

5.2. Market Share & Forecast

5.2.1. By Deployment Mode (On-premises, Cloud)

5.2.2. By End User (Automotive, Defense & Aerospace, Electronics, Medical Devices, Industrial equipment, Others)

5.2.3. By Region

5.2.4. By Company (2025)

5.3. Market Map

6. North America Computer Aided Engineering Market Outlook

6.1. Market Size & Forecast

6.1.1. By Value

6.2. Market Share & Forecast

6.2.1. By Deployment Mode

6.2.2. By End User

6.2.3. By Country

6.3. North America: Country Analysis

6.3.1. United States Computer Aided Engineering Market Outlook

6.3.1.1. Market Size & Forecast

6.3.1.1.1. By Value

6.3.1.2. Market Share & Forecast

6.3.1.2.1. By Deployment Mode

6.3.1.2.2. By End User

6.3.2. Canada Computer Aided Engineering Market Outlook

6.3.2.1. Market Size & Forecast

6.3.2.1.1. By Value

6.3.2.2. Market Share & Forecast

6.3.2.2.1. By Deployment Mode

6.3.2.2.2. By End User

6.3.3. Mexico Computer Aided Engineering Market Outlook

6.3.3.1. Market Size & Forecast

6.3.3.1.1. By Value

6.3.3.2. Market Share & Forecast

6.3.3.2.1. By Deployment Mode

6.3.3.2.2. By End User

7. Europe Computer Aided Engineering Market Outlook

7.1. Market Size & Forecast

7.1.1. By Value

7.2. Market Share & Forecast

7.2.1. By Deployment Mode

7.2.2. By End User

7.2.3. By Country

7.3. Europe: Country Analysis

7.3.1. Germany Computer Aided Engineering Market Outlook

7.3.1.1. Market Size & Forecast

7.3.1.1.1. By Value

7.3.1.2. Market Share & Forecast

7.3.1.2.1. By Deployment Mode

7.3.1.2.2. By End User

7.3.2. France Computer Aided Engineering Market Outlook

7.3.2.1. Market Size & Forecast

7.3.2.1.1. By Value

7.3.2.2. Market Share & Forecast

7.3.2.2.1. By Deployment Mode

7.3.2.2.2. By End User

7.3.3. United Kingdom Computer Aided Engineering Market Outlook

7.3.3.1. Market Size & Forecast

7.3.3.1.1. By Value

7.3.3.2. Market Share & Forecast

7.3.3.2.1. By Deployment Mode

7.3.3.2.2. By End User

7.3.4. Italy Computer Aided Engineering Market Outlook

7.3.4.1. Market Size & Forecast

7.3.4.1.1. By Value

7.3.4.2. Market Share & Forecast

7.3.4.2.1. By Deployment Mode

7.3.4.2.2. By End User

7.3.5. Spain Computer Aided Engineering Market Outlook

7.3.5.1. Market Size & Forecast

7.3.5.1.1. By Value

7.3.5.2. Market Share & Forecast

7.3.5.2.1. By Deployment Mode

7.3.5.2.2. By End User

8. Asia Pacific Computer Aided Engineering Market Outlook

8.1. Market Size & Forecast

8.1.1. By Value

8.2. Market Share & Forecast

8.2.1. By Deployment Mode

8.2.2. By End User

8.2.3. By Country

8.3. Asia Pacific: Country Analysis

8.3.1. China Computer Aided Engineering Market Outlook

8.3.1.1. Market Size & Forecast

8.3.1.1.1. By Value

8.3.1.2. Market Share & Forecast

8.3.1.2.1. By Deployment Mode

8.3.1.2.2. By End User

8.3.2. India Computer Aided Engineering Market Outlook

8.3.2.1. Market Size & Forecast

8.3.2.1.1. By Value

8.3.2.2. Market Share & Forecast

8.3.2.2.1. By Deployment Mode

8.3.2.2.2. By End User

8.3.3. Japan Computer Aided Engineering Market Outlook

8.3.3.1. Market Size & Forecast

8.3.3.1.1. By Value

8.3.3.2. Market Share & Forecast

8.3.3.2.1. By Deployment Mode

8.3.3.2.2. By End User

8.3.4. South Korea Computer Aided Engineering Market Outlook

8.3.4.1. Market Size & Forecast

8.3.4.1.1. By Value

8.3.4.2. Market Share & Forecast

8.3.4.2.1. By Deployment Mode

8.3.4.2.2. By End User

8.3.5. Australia Computer Aided Engineering Market Outlook

8.3.5.1. Market Size & Forecast

8.3.5.1.1. By Value

8.3.5.2. Market Share & Forecast

8.3.5.2.1. By Deployment Mode

8.3.5.2.2. By End User

9. Middle East & Africa Computer Aided Engineering Market Outlook

9.1. Market Size & Forecast

9.1.1. By Value

9.2. Market Share & Forecast

9.2.1. By Deployment Mode

9.2.2. By End User

9.2.3. By Country

9.3. Middle East & Africa: Country Analysis

9.3.1. Saudi Arabia Computer Aided Engineering Market Outlook

9.3.1.1. Market Size & Forecast

9.3.1.1.1. By Value

9.3.1.2. Market Share & Forecast

9.3.1.2.1. By Deployment Mode

9.3.1.2.2. By End User

9.3.2. UAE Computer Aided Engineering Market Outlook

9.3.2.1. Market Size & Forecast

9.3.2.1.1. By Value

9.3.2.2. Market Share & Forecast

9.3.2.2.1. By Deployment Mode

9.3.2.2.2. By End User

9.3.3. South Africa Computer Aided Engineering Market Outlook

9.3.3.1. Market Size & Forecast

9.3.3.1.1. By Value

9.3.3.2. Market Share & Forecast

9.3.3.2.1. By Deployment Mode

9.3.3.2.2. By End User

10. South America Computer Aided Engineering Market Outlook

10.1. Market Size & Forecast

10.1.1. By Value

10.2. Market Share & Forecast

10.2.1. By Deployment Mode

10.2.2. By End User

10.2.3. By Country

10.3. South America: Country Analysis

10.3.1. Brazil Computer Aided Engineering Market Outlook

10.3.1.1. Market Size & Forecast

10.3.1.1.1. By Value

10.3.1.2. Market Share & Forecast

10.3.1.2.1. By Deployment Mode

10.3.1.2.2. By End User

10.3.2. Colombia Computer Aided Engineering Market Outlook

10.3.2.1. Market Size & Forecast

10.3.2.1.1. By Value

10.3.2.2. Market Share & Forecast

10.3.2.2.1. By Deployment Mode

10.3.2.2.2. By End User

10.3.3. Argentina Computer Aided Engineering Market Outlook

10.3.3.1. Market Size & Forecast

10.3.3.1.1. By Value

10.3.3.2. Market Share & Forecast

10.3.3.2.1. By Deployment Mode

10.3.3.2.2. By End User

11. Market Dynamics

11.1. Drivers

11.2. Challenges

12. Market Trends & Developments

12.1. Merger & Acquisition (If Any)

12.2. Product Launches (If Any)

12.3. Recent Developments

13. Global Computer Aided Engineering Market: SWOT Analysis

14. Porter's Five Forces Analysis

14.1. Competition in the Industry

14.2. Potential of New Entrants

14.3. Power of Suppliers

14.4. Power of Customers

14.5. Threat of Substitute Products

15. Competitive Landscape

15.1. Autodesk Inc.

15.1.1. Business Overview

15.1.2. Products & Services

15.1.3. Recent Developments

15.1.4. Key Personnel

15.1.5. SWOT Analysis

15.2. Siemens AG

15.3. SolidCAM Ltd.

15.4. CNC Software, LLC.

15.5. Hexagon AB

15.6. 3D Systems, Inc.

15.7. HCL Technologies Limited

15.8. NTT DATA Corporation

15.9. OPEN MIND Technologies AG

15.10. BobCAD-CAM

16. Strategic Recommendations

17. About Us & Disclaimer

Report Description

Table of content

Figures and Tables

Frequently asked questions

What was the market size of the Global Computer Aided Engineering Market in 2025?

Which is the dominating region in the Global Computer Aided Engineering Market?

Which is the fastest growing segment in the Global Computer Aided Engineering Market?

What is the expected growth rate of the Global Computer Aided Engineering Market?